Tesla’s brand value plummeted in 2024 as Musk splits opinion
Tesla‘s brand value plummeted in 2024, paving the way for Toyota to claim the top spot as the global auto market’s most valuable brand.
According to research from the consulting firm Brand Finance, the US EV maker’s brand value dropped 26 per cent last year to $43bn (£35bn), the second straight year it has fallen.
This was due to an ageing lineup of products and chief executive Elon Musk’s increasingly polarising public persona.
While Wall Street rewarded Tesla’s stock with a 63 per cent rise last year, customer sentiment did not favour the tech behemoth.
Good news for Toyota
Toyota’s brand value outpaced its competitors in 2024, climbing to $64.7bn (£52.8bn).
Brand Finance’s research, which surveyed 175,000 respondents globally, found Toyota continued to benefit from steady product launches, driven by developments in its electric vehicle (EV) capabilities.
Mercedes was a close second. The German car brand was valued at $53bn (£43bn), as Tesla stooped to third place.
Tesla’s decline
David Haigh, Brand Finance’s chief executive, said Tesla’s waning value was in part due to Elon Musk’s public presence and controversy.
“There are people who think he’s wonderful, but many that don’t”, he said.
“If you are buying electric vehicles, his persona is highly likely to impact your view of whether or not you want to buy one of his company’s cars.”
The company’s scores on brand reputation dropped significantly, according to the report.
A recent GovUK survey found that 71 per cent of Brits now have an unfavourable view of Musk, up from 64 per cent in November.
In Europe, the car maker’s consideration score, which measures how many recipients would consider purchasing a Tesla product, fell from 21 per cent, to 16 per cent in 2024.
“Unless Tesla can come up with a whole range of new products that will really excite consumers, and unless they can mitigate some of the antagonism caused by their leader, they will be seen as past their peak and will begin to go down,” Haigh said.